On Apr. 3, CHI CSRC proposed to revise fund custody business rules.
CHI CSRC proposed to amend the Measures for the administration of securities investment fund custody business, to strengthen the responsibilities of custodians.
Specifies that only institutions such as banks and securities companies that have not obtained fund custody qualifications are allowed to engage in fund custody business.
Applicants are required to make a commitment to focus on their main responsibilities and main business; strengthen segregation of fund assets from other custody assets.
Custodians shall take measures to verify information provided by fund managers.
Clarify the custody requirements applicable to private securities investment funds.
Improve the exit mechanism; improve on three types of license cancellation situations.
Allow high-quality custodians whose custody business is at the forefront of the industry to set up wholly-owned subsidiaries to specialize in custody business.
